You read the headline, “lowest unemployment rate in 50 years achieved in October 2018.” Not since 1969 has the unemployment rate been this low. Real wages and household incomes are growing at the fastest rate since the early 2000s.
Meanwhile, existing home sales are slumping—down six of the last seven months on an annualized basis. New home sales are up slightly, but the year-over-year results have bounced up and down like someone on a trampoline. Affordability has decreased significantly. Inventory levels, while increasing in most markets, are still incredibly tight. Mortgage rates have risen to their highest levels in at least ten years. Year-over-year average price increases are softening.
The Great Imbalance
The impact of too many…